Mamta Silk Mills Pvt.Ltd.,, Surat vs Assessee

Mamta Silk Mills Pvt. Ltd. K-1286, Surat Textile Market, Ring Road, Surat. Appellant

Vs.

Income Tax Officer, Ward 1(3), Surat Respondent

PAN: AABCM5904D

अपीलाथ क ओर से /By Appellant : Written Submission ू यथ क ओर से/By Respondent : Shri Roopchand, Sr. D.R. सुनवाई क तार!ख/Date of Hearing : 17.02.2015 घोषणा क तार!ख/Date of Pronouncement : 19.02.2015

ORDER

PER SHAILENDRA KUMAR YADAV, J.M:

This appeal has been filed by the assessee against the order of Commissioner of Income Tax (Appeals)-I, Surat, dated 28.06.2011 for A.Y. 2005-06 on the following grounds:

"1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of ITA No. 1966/Ahd/11 A.Y. 05-06 [Mamta Silk Mills Pvt. Ltd. vs. ITO ] Page 2

Income Tax (Appeals) has erred in partly confirming the action of the Assessing Officer in levying penalty u/s.271(1)(c) of the I.T. Act, 1961 on account of disallowance of expenditure in relation to payment to directors of Rs.3,12,000/-."

2. Learned Authorized Representative through written submission pointed out that the issue pertaining to penalty has been set aside to Assessing Officer by observing as under:

"4. After hearing both the sides, we have carefully gone through the orders of the authorities below. Admittedly, both the documents which were furnished before us are not furnished before any of the departmental authorities below. Be that it may be, these documents cannot be created or cannot be categorized as after-thought because these are records of the third party. From the returns of both the ladies furnished with the income-tax department, it appears that both the ladies have no other income except salary income from the assessee company. Be that it may be, looking to the facts and circumstances of the case, it will meet the ends of justice, if the order of the ld. Learned Commissioner of Income Tax(Appeals) is set aside and the matter is restored to the file of the Assessing Officer with the direction that the Assessing Officer will verify the documents, now submitted before us and if required, the Assessing Officer may ask the assessee to produce both the ladies to ascertain the nature of work done by them in the company in both the assessment years under appeal and readjudicate the disallowance of remuneration afresh, in accordance with law. In the result, ground no. 3 for the assessment year 2004-05 is treated as allowed and Appeal for the assessment year 2005-06 is treated as allowed."

2.1 Nothing contrary was brought to our knowledge. In view of this, we find that issue on quantum which is original point of penalty has been set aside to Assessing Officer as discussed above. So, in the interest of justice, we restore the penalty matter to Assessing Officer with direction to decide the same as ITA No. 1966/Ahd/11 A.Y. 05-06 [Mamta Silk Mills Pvt. Ltd. vs. ITO ] Page 3

per fact and law including outcome of quantum proceeding after providing opportunity of being heard to assessee.

3. As a result, appeal filed by the assessee is allowed for statistical purposes.

Pronounced in the open Court on this the 19th day of February, 2015.

Sd/- Sd/- (ANIL CHATURVEDI) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad: Dated 19/02/2015 True Copy S.K.SINHA

आदे श क ूितिल'प अमे'षत / Copy of Order Forwarded to:-

1. राजःव / Revenue

2. आवेदक / Assessee

3. संबंिधत आयकर आयु0 / Concerned CIT

4. आयकर आयु0- अपील / CIT (A)

5. 'वभागीय ूितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad

6. गाड9 फाइल / Guard file.

By order/आदे श से,

उप/सहायक पंजीकार आयकर अपीलीय अिधकरण, अहमदाबाद ।